Emission scopes: Scope 1 - 3 emissions explained
What Are Emission Scopes?
When discussing climate impact, the term “emission scopes” helps us understand where greenhouse gases come from and who is responsible for them. The idea was developed under the Greenhouse Gas Protocol, a widely used global standard for carbon accounting.
Emission scopes are split into three categories; Scope 1, Scope 2 and Scope 3. Each one highlights a different source of emissions:
While Scope 1 covers emissions released directly from an organisation’s own activities, Scope 2 refers to emissions caused by the electricity or energy a company buys. Then there is Scope 3 which includes all other indirect emissions from a company’s supply chain or customers.
This breakdown allows businesses, governments and individuals to track and reduce emissions more clearly and fairly, especially when working towards net zero targets.
Scope 1: Direct Emissions
Scope 1 emissions come directly from sources that a company or organisation owns or controls. These are emissions that are released on-site and as a result of day-to-day operations.
Common examples of Scope 1 emissions include:
Fuel burned in company vehicles
Gas used in boilers and heaters
Emissions from industrial equipment
Leaks from refrigeration or air conditioning units
Because these emissions happen under a company’s direct control, they’re usually the easiest to identify and reduce. Actions like switching to electric vehicles, improving insulation, or maintaining equipment to prevent leaks can have an immediate impact.
Scope 1 is often the starting point for businesses and even individuals to begin their carbon reduction journey.
Scope 2: Indirect Energy Emissions
Scope 2 emissions are the indirect greenhouse gases released from the generation of electricity, heating, cooling or steam that a company purchases and uses.
These emissions do not happen on the company’s site, but they are still linked to the organisation because it relies on that energy to operate.
Examples include:
Electricity used to power office lights, computers or machinery
Heat purchased from a shared heating system
Cooling supplied by a third-party provider
Even though these emissions happen elsewhere, companies are still considered responsible for them. That’s why switching to renewable energy sources, like wind or solar, can significantly reduce Scope 2 emissions.
Improving energy efficiency, such as installing LED lights or upgrading insulation also helps lower this category.
Scope 3: Indirect Value Chain Emissions
Scope 3 emissions are the most wide-reaching yet complex. They include all indirect emissions that occur outside a company’s direct operations, but still result from its activities. These come from both upstream and downstream in the value chain.
Some common examples are:
Emissions from producing the goods a company buys
Transport and distribution
Business travel and employee commuting
Use of sold products and their disposal
Waste generated in operations
What makes Scope 3 challenging is that these emissions come from third parties, such as suppliers, customers or service providers. Yet, they often represent the largest share of a company’s total carbon footprint.
For many organisations, Scope 3 can account for over 70 percent of all emissions. Measuring and reducing these requires collaboration, transparency and a long-term strategy.
It’s worth noting, a company’s Scope 3 is someone else’s Scope 1 & 2.
Why All Three Scopes Matter
Understanding and addressing all three scopes is essential for anyone serious about reducing emissions and reaching net zero. Focusing on only one or two scopes gives an incomplete picture of a company’s environmental impact.
For example, a business might run energy-efficient offices and use renewable electricity, which helps with Scope 1 and 2. But if the products it sells are made in high-emission factories, shipped long distances, and end up in landfill, its Scope 3 emissions could be far greater.
Ignoring Scope 3 can lead to greenwashing, where companies appear sustainable without making meaningful change.
To make real progress on climate goals, all three scopes must be measured with as much accuracy as possible and reported clearly and transparently. Also, they must be managed through reduction strategies, partnerships and innovation.
This full view helps organisations take responsibility for their role in the climate system, both within and beyond their own walls.
Real Examples Show the Scope Balance
To see the importance of all three scopes, it helps to look at real-world data from well-known companies. These examples show how Scope 3 often dominates total emissions.
Shell (2024)
Scope 1 emissions: around 50 million tonnes
Scope 2 emissions: about 8 million tonnes
Scope 3 emissions: over 1.1 billion tonnes
Most of Shell’s emissions come from the use of the products it sells, such as petrol and diesel, which fall under Scope 3.
Google (2024)
Google reported a 22 percent rise in Scope 3 emissions in 2024, mainly due to increased energy demand and the environmental impact of its supply chain.
Microsoft
Even as Microsoft pushes to become carbon negative, around 97 percent of its emissions come from Scope 3. These include manufacturing devices and running cloud-based services.
These cases show that if companies only address Scope 1 and 2, they leave most of their carbon footprint untouched. Tackling Scope 3 is difficult, but it's essential for real climate action.
How Can Companies Tackle Scope 3?
Tackling Scope 3 emissions is not easy, but it’s where the biggest climate gains can be made. Since these emissions are linked to suppliers, customers and external services, they require a wider effort and long-term commitment.
Here are practical steps companies can take:
1. Work with suppliers
Build strong relationships with suppliers and encourage them to measure and reduce their own emissions. This can involve sharing best practices or setting sustainability standards in contracts.
2. Improve product design
Design products that last longer, use fewer materials, or can be recycled more easily. This reduces emissions linked to production, use and disposal.
3. Encourage low-carbon transport
Look for delivery partners and shipping methods that prioritise cleaner fuels and energy efficiency.
4. Use cleaner materials
Switch to materials with a smaller carbon footprint. This might mean using recycled content or sourcing from more sustainable producers.
5. Track and report data
Collecting accurate data is key. Companies can use tools and frameworks to measure Scope 3 emissions more consistently.
6. Offset where needed
After doing all they can to reduce emissions, some companies choose to invest in verified carbon removal or offset schemes to cover what remains.
No single company can fix Scope 3 alone. But by setting expectations across the value chain, businesses can play a leading role in shaping a more sustainable future.
Conclusion
Understanding the three scopes of emissions is essential for anyone serious about reducing their climate impact.
While measuring Scope 1 and 2 is relatively straightforward, Scope 3 often holds the greatest challenge and the greatest opportunity. Addressing it means looking beyond internal operations and working together across industries and communities.
At Restord, we’re making biochar and exploring its real-world impact with UK farmers, businesses, and councils. Follow our journey on Grounded: A Climate Startup Journey, our award-winning podcast. Listen on Apple Podcasts and Spotify.
